Establishing legal residence in Nevada to avoid income tax

[JohnDoesdoe]

CA - Nevada

I live in New York today and work for a california based company. I am planning to move out west and was thinking that rather than buying a home in the expensive bay area I would buy in Nevada and avoid income tax.

I will undoubtedly need to spend a significant about of time in the bay area during the business week (including some nights), but don't want to have to file taxes in CA as well.

What is the law with respect to CA being able to audit a nevada resident.

If I have a Nevada drivers license, primary bank account, register my car there and own property and file my Federal return from that address -- is there a risk in renting a place in CA as well?

 

[Snipes5]

If you work in CA, you will have to pay taxes in CA on your CA source income. It doesn't matter where you live.

Living in NV does sound like it would be less expensive though.

Snipes

 

[JohnDoesdoe]

Only a % in CA

CA - Nevada

Snipes -- I will be working from my home office in Nevada and will be visting UT, CO, AR and CA for business. When I got to CA for business I will spend some time working out of the CA office. This probably won't exceed a total of 5 working days out of a month.

Should I ask my employer to deduct payroll taxes for 1/4 of the income? Or should they treat me as a Nevada employee and deduct 0, leaving me to deal with the proper fillings.

Thx

 

[Snipes5]

If they are able to do the W-2 correctly, then they can deduct taxes for the days you work in CA and the other states.

If they can't be relied upon to do it correctly, you will have to deal with it yourself.

You will need to fiile non-resident returns for CA, UT, CO and AR.

The income won't be split four ways, it will be proportionate to the number of days you worked in each state.

Snipes

 

[dcortez]

Legal Residence in Nevada - Income and vacation property in California

My question is similar, except I am retired, have no earned income in California. I do have deferred compensation from a previous job in California. It is spread over several years.

If I establish legal residence in Nevada, but maintain a second vacation home in California, can I avoid reporting my deferred compensation on my California "non Resident" tax return. I have investment real estate in california so I must file a 540 NR .. but will my deferred compensation distributions from my previous California job be taxed .. even though I am a Nevada resident?


Thanks for educating me.